Key Take Aways:
- Leads can be found a number of different ways some, are paid and some require hustle to find the right deal
- Investors bring value to sellers who may be facing a distressed situation so looking for data or sources that indicate this can be valuable in your tool belt
- Create good systems and process to consistently contact and follow up with leads.
Wholesaling real estate is a dynamic path to financial freedom, but let’s be honest – it takes hustle. The good news? There’s a wealth of lead generation strategies out there, catering to every budget and personality. Buckle up, because we’re diving into the treasure trove of motivated sellers waiting to be connected with the perfect investor (you!). How do you find motivated sellers?
Where to Find Sellers Eager to Close Quickly
Imagine a seller facing a mountain of problems – a house in need of serious repairs, a looming inheritance, or a sudden job relocation. These are the folks ripe for a quick, cash sale. Let’s explore some prime hunting grounds:
- FSBO (For Sale By Owner): These sellers are taking matters into their own hands, often advertising on platforms like Facebook Marketplace or Craigslist. Keep an eye out for FSBO listings that might not get the traction they deserve. You may find that over time some of these sellers may face frustration of buyer demands and the lack of qualified buyers that get eyes on their property. It is common to also find properties that needed too much work so a realtor may have turned down taking a listing and now these sellers are selling on their own.
- The MLS (Multiple Listing Service): Not all properties on the MLS find a buyer through traditional channels. Look for “withdrawn, terminated or expired” listings that may indicate seller frustration. You can also search for keywords hinting at motivated sellers, like “investors only,” “foundation issues,” or “motivated seller.” If you know a realtor they might be able to set you up with an automatic email drip with new leads that fit this criteria on a daily basis.
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Spotting Curb Appeal’s Kryptonite
Sometimes, the property itself screams “motivated seller.” Take a ride around your target neighborhoods and be on the lookout for signs of distressed or abandoned properties. You may find a yard that is overgrown or windows that are boarded up or perhaps a lot of advertisements in the door handle that show that house has been empty or not taken care of on a regular basis. This is called Driving for Dollars and this can have a really high efficacy of response rate. You may not have high volume but you may find a better connect rate with sellers and a higher likelihood of selling. How do you do it?
When you find a prime candidate pull over and knock the property to see if someone is there. If it is empty leave a sticker on their door with your contact information and a hand written note that you want to buy their house. Then skip trace the owner of the property and send them a picture of that house asking if they are looking to sell. Finally call the owner and ask them if they are looking to sell and that you are outside the property right now.
Unlike many other lead sources this one cannot be found on the internet which means a lot less investors are likely to call on the seller and you may have a higher chance of connecting with them.
Building Your Wholesale Network
Real estate is a people business, and sometimes the best leads come from unexpected places. Here are some connections that can turn into gold:
- Professionals in the Know: Attorneys specializing in divorce or real estate, inspectors, contractors, and even mail carriers can come across sellers in need. Build relationships and let them know you’re a reliable cash buyer.
- Senior Sellers: Many seniors relocate after retirement, leaving behind houses that might need work. Consider contacting senior centers or retirement communities in your area.
Investing in Leads: When Time is Money
For those with some budget to play with, lead-generation companies can be a great time-saver. These services offer targeted lists based on specific criteria, like:
- Tax Delinquencies: These sellers might be facing financial hardship, making them open to a quick sale.
- Absentee Owners: Managing a property from afar can be a hassle, leading some owners to consider selling.
- Pre-Foreclosure: A looming foreclosure can be a powerful motivator to accept a fast cash offer.
- Evictions: Every Landlord’s nightmare and finding a trashed out deal may be just the thing that makes a Landlord want to hit an easy button with an investor.
- Probate: A lot of families will face very difficult situations with inherited homes and the home is often vacant for a long period of time during probate resulting in maintenance issues that may be difficult to sell on the MLS
- Divorce: There are situations where a divorce can create a forced sale and being done with the sale as is without having to agree on every repair is the better way to move past a hurtful past.
- Liens: If a house has mechanics liens they may be a good property to call on
- Absentee Owner: Many times an owner will have a secondary address in the CAD records indicating this property is not their home. From time to time you will find someone who no longer wants to hang on to the property.
Remember, the key is to be creative, persistent, and build relationships. With the right approach, you’ll be well on your way to uncovering a goldmine of motivated sellers and building a thriving wholesaling business.